Ethereum
Ether flirts with a level of $2,400: what’s next for the cryptocurrency?
Technical analysts identified key support and resistance levels as ether fluctuated near $2,400.
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Ether prices have been rallying recently, climbing over the past week and fluctuating near the $2,400 level today.
Specifically, the cryptocurrency hit $2,389.12 this afternoon, CoinMarketCap figures show, after falling below $2,250 less than a week ago.
Analysts identified a handful of factors as driving the gains, citing technical upgrades and speculation that the U.S. Securities and Exchange Commission would soon approve a cash exchange-traded fund for the ether.
After hitting the aforementioned intraday high, the ether token, which serves as the native digital asset of the Ethereum platform, pulled back ever so slightly, but still managed to hold on to the vast majority of its recent gains.
At the time of writing, it was trading at around $2,360.
Following these latest price movements, what’s next for the world’s second-largest digital currency by total market capitalization?
Key Support Near $2,000
Several markets have shed light on this issue, providing technical analysis that traders can use to track the cryptocurrency.
Some of them identified crucial support near the $2,000 price level.
Brett Sifling, investment advisor for Gerber Kawasaki Wealth and Investment Managementwas one of these individuals.
“From a technical perspective, I think it is important that Ether stays above the major support level around $2,000,” he said.
“This was a major resistance level over the last 2 years that has since broken and proven to be a new support level so far,” Sifling said.
“Ether continues to make higher highs and lows, which is generally a strong technical sign for a continued breakout,” he added.
William Noble, who currently serves as director of research and content development for Emerging Assets Groupproposed a similar approach, identifying support near $2,050.
“Support is near $2,050 and resistance is near $2,600,” he clarified, adding that “ETH has been confined in this ‘box’ for some time.”
Armando Aguilar, an independent cryptocurrency analyst, highlighted a slightly different level when identifying key support.
“Support has formed around $2,200 supported by bullish traders,” he said.
Important resistance levels
The technical analyst provided further clarity on the matter by highlighting price levels that could act as resistance.
“According to technical indicators from TradeView, the first major resistance level for ETH is near the $2,340 level, following a high of $2,300 which could allow ETH to surpass $2,400 without much resistance until ‘at the high level of $2,400,’ Aguilar said.
He noted that if the digital currency fails to break free from these specific price levels, it could fall again.
“If ETH fails to break through the mid-$2,300 resistance levels, it could face a downtrend until it reaches $2,150 to $2,200,” Aguilar said.
“If ETH breaks above these levels, the blue-chip crypto could move towards the low $2,000 levels.”
Sifling also pointed out some important resistance levels, although higher than those highlighted by Aguilar.
“As for the upside, it is important for Ether to surpass recent highs around $2,700 and is likely to face more resistance at the $3,000 and $3,500 levels, which were previous highs in 2021 and 2022,” he said.
Disclosure: I own Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.